Polish e-commerce star Allegro's shares rocket on IPO day

Allegro.eu SA shares rocketed on the day of their stockmarket debut, valuing the company at approximately £13.6bn.

Shares of the Polish online retailer, which had priced at the upper end of the range at which they had been marketed, settled roughly 50% above their listing price, with foreign investors reportedly accounting for the majority of buyers.

The stock's listing price was at an implied 37 times earnings before interest, taxes depreciation and amortisation.

Nevertheless, some analysts cautioned that the firm's real test would be its ability to fend off competition from foreign rivals, including Amazon.com and AliExpress.

Feverish demand for the company's shares catapulted its valuation to second-place among the country's listed names, only behind those of game developer CD Projekt.

Private equity outfits, Cinven, Permira and Mid Europa Partners, who remained in control after the sale, were subject to a 180 day lock-up.

The company was due to update shareholders on third quarter trading on 26 November.